AMC Entertainment Holdings
stocks were soaring in after-hours trading on Friday – and it has nothing to do with Barbie, Oppenheimeror any other movie that comes out this weekend.
In something of a shock, a judge stopped AMC (ticker: AMC) from converting its so-called
(APE) into ordinary shares. This will prevent an agreement AMC had with shareholders that would have allowed the conversion to take place, with additional shares going to shareholders to offset the dilution.
The judge didn’t provide much reason, other than to say that “the settlement cannot be approved as submitted,” according to Bloomberg.
AMC stock had jumped 71% to $7.52 as of 5:27 p.m., while APE – short for AMC Preferred Equity – fell 17% to $1.50. This isn’t the first time, however, that a judge has denied AMC’s claims.
Now it’s back to the drawing board.
AMC has fallen far since its days as a stock darling, with its shares down more than 80% since the 2021 peak. Strangely, the stock even started trading based on something akin to fundamentals, like when it rose in May after reporting strong earnings. The apparent success of “Barbenheimer,” as Barbie and Oppenheimer’s double feature is called, might have been another reason for optimism about the company. Insteadhe’s back in meme-stock city.
Let the festivities begin.
Write to Ben Levisohn at firstname.lastname@example.org